find_rate | R Documentation |
Thru a root finding process, this function finds the rate that corresponds to a given set of discount factors, as for the loan to have the same present value discounted with the discount factors or with that constant rate
find_rate(m, d, loan_type, interval = c(1e-06, 2), tol = 1e-08)
m |
The maturity of the loan |
d |
The discount factor vector |
loan_type |
One of the loan types |
interval |
The interval for the root finding process |
tol |
The tolerance for the root finding process |
find_rate(m = 3, d = c(0.99, 0.98, 0.97), loan_type = "bullet")
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